(Brad Goodman, SYSTM Head of Product) Navigating the vast landscape of financial products can be taxing and time consuming for advisors. With thousands of registered investment options and a universe of alternative investments to consider, the task of portfolio optimization would benefit from increased simplicity and trust. Today's leading advisors are seeking streamlined investment due diligence and selection processes to enhance practice management efforts. By accessing a carefully curated menu of investments incorporating a consistent due diligence framework, advisors can focus more fully on client communication and business growth.
Many traditional investment platforms offer advisors an ocean of thousands of products, leaving them to swim or sink in their pursuit of appropriate options for their practice. To address this issue, we are taking a more focused and thoughtful approach utilizing newer technology solutions, complemented with a few hundred different strategy options. To curate this list from thousands of strategies, there needs to be a scalable vetting process and transparency, allowing advisors to gain trust and save valuable time in the decision-making process.
Advisors recognize the value of a unique blend of world-class investment resources and personalized, high-touch service. Leveraging highly regarded research capabilities, as well as open-architecture platforms that tap into leading managers, these advisors gain access to top-quality investment opportunities.
When conducting deeper-level due diligence, a well-rounded process incorporates qualitative assessment in harmony with quantitative evaluation. Premium due diligence also involves dialogue with research, management, and key personnel. This interaction helps assess the credibility, competence, and alignment of potential investments with clients' goals. Furthermore, data analysis and quantitative screening play a vital role in evaluating investment opportunities, enabling advisors to make informed decisions and align expectations based on a robust understanding of the investment’s fundamentals.
Due diligence is an ongoing commitment that requires continuous monitoring and evaluation to ensure investments remain aligned with their mandates and objectives. Advisors must stay informed on market trends, assess changes in management, organization, or strategy, and consider the impact of macroeconomic factors. With access to ongoing due diligence support, clients are confident advisors are acting as in their best interest, knowing that their portfolios are managed with care and optimized to meet evolving needs.
It is an opportune time for advisors to educate themselves on new technology offerings that simplify the process of selecting financial products. Honing in on solutions that alleviate complexity and burdens, rather than adding to them, offers significant value that compounds over time.
Through extensive conversations with advisors, it has become evident that excessive costs and complexities in the due diligence process are a common grievance. While it sounds counterintuitive, one solution is to leverage the expertise and institutional knowledge of an outside Registered Investment Advisor (RIA), which not only provides research into existing strategies but also has the flexibility to research and add new managers and strategies to a personalized marketplace. This partnership-driven approach empowers advisors to navigate the due diligence process with confidence, offering distinct advantages compared to traditional outsourcing to third-party firms.
Modern technologies are revolutionizing the due diligence process. In-house due diligence, curated investment menus supported by an institutionalized process, and partnership-driven relationships should be the standard for technology solutions utilized by wealth management firms across the country. By embracing these advancements, advisors can simplify their workflows, enhance client experiences, and achieve better outcomes in their investment management practices.
To learn more, please visit https://www.systmwealth.com/
